Economics IGCSE Essay Examples
Economics Essay Questions
4a) Direct and Indirect taxes are two different types of tax that a government may impose in order to achieve some of its objectives. Direct tax is a tax on the earnings of consumers and producers such as an income tax. Indirect tax, however, is a tax on expenditure such as a Value Added Tax on all goods and services. The main difference between the two types of tax are that a direct tax is collected directly from the owner of it whereas an indirect tax is collected by an intermediary from the consumer.
4b) Macroeconomic aims of the government are the central aims that the government of a country will try to achieve and usually consists of having a low and stable rate of inflation, having a high employment rate, having a high real economic growth and maintain a stable balance of payments/trade. A reduction in taxation will cause consumers to have more disposable income as less of their total income is taken by the government. This will likely lead to an increase in aggregate demand, increasing economic growth as production increases and also lowering unemployment as more production caused by a rise in consumer demand will create more jobs for the population.
9b) Taxes are a portion of the earnings and expenditure of the general public given taken by the government in order for it to achieve some of its objectives. Governments impose taxes for many reasons, but one of the most important reasons is to correct and prevent the market failure of the under-provision of public and merit goods and services such as street lighting by providing public goods and services for the benefit of the public. Another reason would be to redistribute wealth among the population which is normally done through progressive tax systems. Also, a government can use tax to help it achieve its macroeconomic goals as rates of taxation can influence aggregate demand. As well as this, a government could impose taxes to undermine de-merit goods by placing high taxes
4a) Direct and Indirect taxes are two different types of tax that a government may impose in order to achieve some of its objectives. Direct tax is a tax on the earnings of consumers and producers such as an income tax. Indirect tax, however, is a tax on expenditure such as a Value Added Tax on all goods and services. The main difference between the two types of tax are that a direct tax is collected directly from the owner of it whereas an indirect tax is collected by an intermediary from the consumer.
4b) Macroeconomic aims of the government are the central aims that the government of a country will try to achieve and usually consists of having a low and stable rate of inflation, having a high employment rate, having a high real economic growth and maintain a stable balance of payments/trade. A reduction in taxation will cause consumers to have more disposable income as less of their total income is taken by the government. This will likely lead to an increase in aggregate demand, increasing economic growth as production increases and also lowering unemployment as more production caused by a rise in consumer demand will create more jobs for the population.
9b) Taxes are a portion of the earnings and expenditure of the general public given taken by the government in order for it to achieve some of its objectives. Governments impose taxes for many reasons, but one of the most important reasons is to correct and prevent the market failure of the under-provision of public and merit goods and services such as street lighting by providing public goods and services for the benefit of the public. Another reason would be to redistribute wealth among the population which is normally done through progressive tax systems. Also, a government can use tax to help it achieve its macroeconomic goals as rates of taxation can influence aggregate demand. As well as this, a government could impose taxes to undermine de-merit goods by placing high taxes